Question
Hi tutor, I need your help and guidance for the following question regarding duties of agent in law: Gary is a chef who owns a
Hi tutor,
I need your help and guidance for the following question regarding duties of agent in law:
Gary is a chef who owns a restaurant and food catering business called "Guest Kitchen". As he is often kept busy in the restaurant's kitchen, he decided to hire a business graduate, Linda, to help him with other aspects of his business. Gary strongly believed in Linda's competence, and gave her express authority to handle all contractual arrangements relating to the business.
Gary told Linda that the only exception was that Gary wanted to be consulted before they take on any catering job. This is because there have been media reports of food poisoning incidents involving caterers, and Gary wanted to ensure that food quality and safety standards can be maintained before they take on any catering job.
One day, Linda met with a representative from a real estate company called Pro Land ("Pro Land"). Pro Land wanted to cater food for a major corporate event, and wanted to know quickly if Gary Kitchen would be able to take on the catering job.
Pro Land also offered to issue Linda with shopping vouchers worth $1,000 as part of the deal. As Gary was overseas at that time, Linda did not want to trouble him on this matter, and agreed to take on the catering job with Pro Land given that it represented a massive business opportunity.
Linda did not realise at that time that there would be a food safety risk with this catering job which has arisen due to Pro Land's special requirements. As Linda did not have Gary's banking account details at that time, she asked Pro Land to make electronic payment to her personal banking account.
When Gary returned from his overseas trip and found out about this catering job, he was very upset with Linda. Sensing his bad mood, Linda decided not to tell him about the shopping vouchers that she had received from Pro Land.
(1) Outline the five (5) duties of an agent (which are owed to the principal), and analyse whether Linda has breached these duties in her relationship with Gary based on the given scenario.
(2) Define the concept of "agency" and identify who is the principal, agent and third party in this scenario.
(3) Specify relevant case law related to the above scenario.
Thank you. Appreciate!
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